This March marks the 10-year anniversary of the longest bull market in history that has been ploughing on in the US since early March 2009. The S&P 500 Index has delivered a staggering 400% in total returns over the decade. In addition, the US economic cycle is the second longest… Read the article
With World Cup fever captivating the globe and the tournament providing lots of surprises, Investment Director, Ritu Vohora, looks at the importance of having a strong offence and defence strategy when thinking about sector… Watch the video
Today (March 22nd) is World Water Day which aims to focus attention on the importance of water not only in our daily lives, but also for the sustainable development of the global economy. With the world’s population continuing to rise hand in hand with urbanisation, global water demand… Read the article
Guest contributor: Jenny Rodgers, Investment Manager, M&G Multi Asset team
The stockmarket in the UK hit a new all-time high in early November, but it would be hard to describe the recent UK financial and business press headlines in recent months as unambiguously good news. What’s going on?
Mixed signals… Read the article
Earlier this year, data from the UK’s Continuous Mortality Investigation Mortality Projections Committee showed that life expectancy improvements have slowed dramatically. Initially thought to be a blip in the data, there is increasing evidence, both in the UK and in other developed countries, that this is a structural change in… Read the article
Last October, my colleague Tom Dobell wrote about the absurdity of how companies are forced to treat their long-term pension liabilities.
After another couple of reporting periods characterised by falling discount rates, I wanted to lay out in a slightly more mathematical fashion why I think Tom… Read the article
Don’t let the initial market enthusiasm to Trump’s victory in the US Presidential election detract from the longer-term themes investors in the healthcare sector need to consider and the limited visibility we have over how the Republicans will approach US healthcare policy.
The reaction in healthcare to the outcome of… Read the article
As the presidential race enters the final lap, rhetoric around political drug pricing remains high and the pharmaceutical and biotech sectors are lagging the broader market year-to-date. However, in my opinion, US political drug pricing fears are overstated and investors should be more concerned about commercial drug price and market… Read the article
Pensions are long-term obligations. Falling interest rates have affected both the way that companies calculate the size of these liabilities, but also the assumed growth rates of the assets that they hold in order to pay those pensions.
What is quite extraordinary in my view is that QE, which now… Read the article
Why did L’Oreal spend nearly €7.4bn on advertising and promotional activity in 2015? Why does the market value L’Oreal shares at a 70% premium to the Stoxx 600? Because conventional knowledge suggests a strong brand will allow a business to attract more consumers, retain their business and generate higher gross… Read the article
In my recent blog and in the blog from my colleague last week, we highlighted the disruptive power of new technology companies and the importance of creating networks to organize, synthesize and expand information through social, organisational and process innovations.
I believe there are changes in… Read the article
The Rubik’s Cube is an easy puzzle for those who know the correct ‘algorithms,’ or sequence of turns needed to align the coloured cubes – and a frustrating enigma for those who don’t. For a devoted few, the challenge is solving the puzzle as quickly as possible, which officially stood… Read the article
Technology is the biggest sector in the S&P 500 index and accounts for five of the top ten largest companies. The sector is growing at a pace and scale never previously imagined and is eating into the profits of every other industry.
Tech giant Amazon is a prime example (no… Read the article
Superficially, the healthcare sector in Europe looks attractively valued relative to consumer staples, but on a cashflow basis the relative valuation argument disappears. This may reflect more aggressive earnings adjustments in European healthcare.
In the US though, the valuation gap between healthcare and consumer staples does look more real and… Read the article
Whilst there are few direct implications for UK pharmaceuticals and healthcare companies of the UK leaving the European Union, there are some indirect benefits that have triggered sector outperformance in the past week relative to the broader UK market, and even to other defensive sectors which have outperformed, like consumer… Read the article
Since the Brexit vote, the UK homebuilder index has fallen by 30% reflecting concerns that the UK economy – and the UK housing market – are headed towards negative growth.
The market is right to be worried. It’s pretty tough to argue that if the UK heads into recession the housing… Read the article
Banks were hit hard yesterday in the wake of the UK’s vote to leave the EU, with trading in RBS and Barclays temporarily suspended yesterday morning. Today, the market has opened firmer with financials amongst the leading gainers emphasising the increasingly volatile world we are now inhabiting. Standing back from… Read the article
Share prices in the US retail sector have declined by around 7% on average since the beginning of May compared with an advance of 1.4% for the S&P 500 (see following table). Some commentators have suggested this is an indication of weakness in the underlying health of the US consumer,… Read the article
Having been in the doldrums since the financial crisis, there are now tentative signs that the European residential construction sector is on the mend. We’re seeing encouraging data coming through and from our analysis and our discussions with companies, we’re increasingly confident that the earnings growth potential in the sector… Read the article
Consumers are a demanding bunch. They want more choice, convenience and above all, a great customer experience. Yet they don’t want to pay more for the privilege! Satisfying the modern customer poses considerable challenges to today’s retailers. Can anyone but the consumer prosper in this environment?
Strong house price growth,… Read the article
When the oil price began its steep descent in autumn 2014 it was heralded as the equivalent of a tax cut for the US consumer. Estimates suggested that cheaper gasoline would add an extra US$1,500 to household budgets per year and that the extra funds would fuel spending in shops,… Read the article
Last week, there will have been a rush of customers to jewellery stores across the UK (and the world) to purchase gifts of charm bracelets, rings, earrings and the like in time for Valentine’s Day. But as people queued to buy gifts for their loved ones, few will have been… Read the article
It’s been a rollercoaster week for bank shares across the world as a confluence of factors stoked a panic in the sector. Exposure to energy, the impact of negative interest rates and worries about a recession all played a hand.
The key decision to make here is whether or not… Read the article
I was recently in San Francisco attending the biggest US healthcare investor conference and there’s little doubt that the level of innovation in the pharma and biotech industries remains very high. Many new therapies are coming to market with more genuinely novel drugs in 2015 than at any time in… Read the article
Obamacare is revolutionising healthcare in the United States – the single most important market for healthcare companies in the world. This has profound implications for the outlook for these companies and as a consequence how to identify the best investment opportunities in the sector.
Half of total global healthcare spending… Read the article
Consumer staples have historically been seen as largely homogeneous, offering broadly similar levels of predictable, long-term growth and cash generation. That seems unlikely to be the case going forward. Too much of the investment debate on consumer staples has been around the valuation premium they are trading on and not… Read the article
Images of RoboCop may spring to mind when you hear the term ‘robo-advice’. But robo-advice is increasingly seen as the solution for wealth managers and financial advisers looking to provide a service to those clients unable to afford face-to-face advice. Many believe it has the potential to address the advice… Read the article
With Bank of England governor Mark Carney’s recent speech on fossil fuels and December’s UN climate change conference looming on the horizon, it’s not surprising the whole ‘stranded assets’ argument is gathering momentum. Warnings abound that investors and governments will face potentially huge losses if tougher action on climate change… Read the article
“Price gouging like this in the specialty drug market is outrageous. Tomorrow I’ll lay out a plan to take it on”. @HillaryClinton, Twitter, 21 September 2015
“Every politician has a promising career. Unfortunately, most of them do not keep those promises”. Jarod Kintz, This Book is Not FOR SALE, 2011.… Read the article
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Welcome to the M&G Multi Asset Team’s Allocation blog, previously known as the Episode blog. We have changed the name of our blog to resonate better with our readers in Europe, however, the content and purpose of the blog has not changed. The Allocation blog continues to aim to provide unique market perspectives from our dedicated team of experienced asset allocators.OK